HSBC lowers EUR-AUD trade target, stop-loss

HSBC Global Research has adjusted its position on the EUR-AUD currency pair, setting a lower target and stop-loss levels for its sell trade idea.

On the other hand, the firm revised its target down to 1.5690 from its initial position opened on September 20 at 1.6400. The stop-loss was also tightened to 1.6150.

The decision follows a series of negative data impulses from the Eurozone, which have persisted since the trade idea was initiated. Market expectations currently factor in a 25 basis point rate cut by the European Central Bank (ECB) in October.

However, further dovish signals in line with ECB President Lagarde's comments on September 30 might trigger additional market adjustments. Speculations are brewing that cuts could reach 50 basis points if the current trend continues.

The Eurozone's fiscal concerns are adding pressure to the euro, as evidenced by the sustained wide spread between the 10-year OAT (French government bonds) and German Bund yields. These factors contribute to the bearish outlook for the euro against the Australian dollar.

In contrast, the Reserve Bank of Australia (RBA) is expected to maintain its current policy stance while other central banks are easing theirs.

HSBC economists also anticipate additional policy stimulus from China, which is likely to benefit the Australian dollar. With the terms of trade shifting in favor of the AUD, HSBC's analysis suggests that the currency will perform better than the euro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com

Последние публикации
Wall Street falls after inflation, jobless claims data
10.10.2024 - 18:00
Air India buys 85 Airbus jets, eyes more Boeings, sources say
10.10.2024 - 17:00
Stocks fall, dollar and Treasury yields edge down after CPI and jobless claims data
10.10.2024 - 17:00
Wall Street opens lower after higher-than-expected CPI data
10.10.2024 - 17:00
Dollar edges down against yen after uptick in U.S. inflation
10.10.2024 - 17:00
US futures extend losses after higher-than-expected inflation data
10.10.2024 - 16:00
Futures down ahead of key inflation data; Tesla rises
10.10.2024 - 15:00
Air India buys 85 Airbus jets, may add Boeing jets, sources say
10.10.2024 - 15:00
BMO juices up US wine unit with new hiring, bets on industry recovery
10.10.2024 - 14:00
Futures dip ahead of key inflation data
10.10.2024 - 14:00
Traders await US inflation test, China revives stocks rally
10.10.2024 - 13:00
New Zealand dollar has further to fall - UBS
10.10.2024 - 13:00
Dollar steady ahead of key inflation data
10.10.2024 - 12:00
Russian rouble hits one-year lows against major currencies
10.10.2024 - 12:00
Dollar hits 10-week high against yen as Fed bets ebb ahead of CPI
10.10.2024 - 12:00

© Analytic DC. All Rights Reserved.

new
Обзор рынка ЗАПАСЫ ПРИРОДНОГО ГАЗА В США ↓82B